TLDR: Tenecent is the next king of entertainment

by Backchannel (these highlights provided for you by Annotote)

Tencent is using its social networks, WeChat and QQ, and video games to build an entertainment juggernaut.

the largest gaming company in the world

The company has found a symbiotic way to monetize both [messaging & gaming], through the astonishingly lucrative sales of virtual goods such as avatars, skins, and other digital artifacts for personalizing your online presence … that get distributed through its massive messaging platforms.

Just as Disney used the characters from its signature films to sell merchandise, music, spin-off shows, games, and tickets to its theme parks, Tencent is using its video game assets to fuel a books, comics, music and film empire.

[In 2008] Tencent switched from developing its own games, which was never its strength, to licensing already successful, more immersive games and using its massive scale to distribute them … in China.

Tencent hasn’t relied heavily on advertising to become profitable … online advertising accounted for 17% of Tencent’s annual revenue, versus … online games and virtual goods [at] 78% of the company’s $15.8B in annual income.

[Tenecent has a] “pan entertainment” strategy … to leverage its intellectual property (IP), mainly from games, across multiple kinds of entertainment: live-action and animated films, books, music, and more.

These are all experiments leading in one direction: movies. Tencent is jockeying with Alibaba Pictures and Wanda Group for its share of China’s projected $10.4 billion in box-office receipts